Jazz Corporation sells its product for $800 per unit. The variable cost per unit for the product is $500. Jazzs fixed cost is $75,000,000.

Required:

1. Determine Jazzs breakeven point in revenues.
2. Determine the operating income, if Jazz sold 220,000 units.
3. Explain if Jazz Corporation should be concerned about the long-run success of the business. If management is concerned, what strategies might they consider?